M-Commerce: Its Importance and How Businesses Can Benefit From It

M-commerce is fast becoming the shopping method of choice for consumers around the world and especially in the Asia Pacific region. Keep reading to learn more about its importance and how your business can benefit from it.

Did you know that mobile commerce or m-commerce growth in Malaysia will overtake e-commerce by 2023? And according to the Business Wire, mobile devices were used in 50% of all e-commerce transactions across Asia Pacific.

This indicates a clear shift in consumer behavior and a change in purchasing habits. But in order to tap into this new movement, we first need to understand:

What is M-Commerce?

M-commerce is a subset of e-commerce. Where e-commerce refers to online purchases made with a PC, m-commerce is related to sales made with a mobile device, i.e., smartphone or tablet.

A relatively new development, m-commerce is the culmination of rising smartphone penetration and e-commerce worldwide. While e-commerce has made online shopping a reality, m-commerce allows consumers to shop anywhere, anytime.

Additionally, m-commerce eliminates the need to swipe cards and allows faster transactions. As a result, successful e-commerce merchants must pay special attention to the following:

• User Interface (UI)

• User Experience (UX)

• Availability of favored payment methods

As we can see, the onus is now on the merchant to provide customers with a desirable shopping experience.

Benefits of M-Commerce For Merchants

1. M-Commerce allows merchants to extend their reach

The advent of wireless data networks and smartphones allows us to stay connected from anywhere around the world. It also allows businesses to extend their reach unlike never before.

In the past, e-commerce was mainly constrained to shoppers with a PC and an internet connection. But thanks to m-commerce, anyone with a smartphone can now participate in the e-commerce market.

And as smartphones become more widely available, this market will only grow bigger with time.

2. More direct communication

At the end of the day, sales is all about providing customers with the right solutions at the right time. And this is where mobile commerce apps come into their own.

With geolocation and push notifications, it's now easier than ever to provide customers with a tailor-made experience. For example, sending out push notifications during lunch hour when people are on break makes it easier to get your message across.

In Malaysia, apps such as Lazada and Shopee send custom notifications during special events to encourage customers to pick up their phones and browse the items on offer.

3. Opens up new markets

With its diverse economies and large population base, the Asia Pacific region is a top business destination for many businesses. And thanks to high rates of smartphone penetration and a vibrant e-commerce market, it's easy to see why e-commerce has taken off the way it has.

So, catering to the mobile crowd may be just what you need if you're looking to get your foot into the door.

4. It encourages innovation

Just 15 years ago, buying anything online would have sounded overly complicated and somewhat risky. Nowadays, we don't even think twice about opening our favorite shopping apps and adding items.

All this results from continuous innovation and evolution in the e-commerce sector. And with the rise of m-commerce, merchants need to change up their range of offerings to cater to this shift.

5. Speeds up the customer journey

While mobile-optimized sites are great, nothing beats the responsiveness and speed of a mobile app. And that's the first thing you'll notice when comparing the two.

A well-designed mobile app shortens the duration of the customer's journey. It provides the customer with all relevant information in a simple, well-ordered format, thus allowing for faster sales.

This also ensures that customers have the best possible experience every time and is an essential part of e-commerce.

6. Gives merchants access to new customers

In the early days, mobile phones were heavy, complicated, and awkward to use. Fast forward more than 2 decades, and smartphones have changed everything. They've become sleek, lightweight devices and an extension of our lives.

With a smart device, you can transfer funds, make payments, and do your shopping without ever having to sit down at a PC or get out of bed. What this shows us is that mobile devices are the future of commerce.

With mobile device penetration on the rise, we can only expect more consumers to embrace m-commerce, thus providing merchants with an ever-growing customer base.

XanPay: A Local Payment Platform With Global Solutions

As we've seen so far, m-commerce has the potential to be the main driving force behind the online shopping industry in the years to come. And while it allows merchants to reach out to customers worldwide, one issue still remains — payment.

With so many countries to cater to, a merchant simply cannot meet the needs of such a diverse market. While payment platforms facilitate the international transfer of funds, these services often charge exorbitant service fees and offer unattractive FX rates.

Furthermore, such services lack support for alternative payment methods such as e-wallets and direct bank transfers. And this is why we at XanPay want to lend you a hand by offering:

For more information on XanPay and how we can help you change the world, check out our website.